Raymond James Upgrades McKesson Corp. to Outperform (MCK)
McKesson Corp. (NYSE:MCK) was upgraded by stock analysts at Raymond James from a “market perform” rating to an “outperform” rating in a report issued on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $155.00 price target on the stock. Raymond James’ target price points to a potential upside of 15.91% from the stock’s previous close.
The analysts wrote, “We are upgrading shares of McKesson to Outperform from Market Perform and setting a $155 price target. We believe the potential acquisition of Celesio could add significantly to the company’s earnings growth profile (double digit % EPS accretive) as McKesson reaps generic purchasing savings. Besides Celesio, the company’s FY14 guidance looks beatable based on robust branded/generic inflation and likely additional accretion from the PSS World acquisition. Additionally, McKesson’s valuation with (14.1x CY14 EPS) or without (14.9x) Celesio is attractive relative to peers (Amerisource at 16.6x CY14 EPS, Cardinal 14.5x CY14 EPS).”
Shares of McKesson Corp. (NYSE:MCK) opened at 133.72 on Wednesday. McKesson Corp. has a 52 week low of $88.45 and a 52 week high of $138.43. The stock has a 50-day moving average of $126.7 and a 200-day moving average of $117.. The company has a market cap of $30.572 billion and a P/E ratio of 22.97.
McKesson Corp. (NYSE:MCK) last posted its quarterly earnings results on Thursday, July 25th. The company reported $2.07 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.71 by $0.36. The company had revenue of $32.20 billion for the quarter, compared to the consensus estimate of $32.60 billion. During the same quarter in the prior year, the company posted $1.55 earnings per share. The company’s quarterly revenue was up 4.9% on a year-over-year basis. Analysts expect that McKesson Corp. will post $8.32 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Sterne Agee reiterated a “buy” rating on shares of McKesson Corp. in a research note to investors on Tuesday, October 1st. They now have a $164.00 price target on the stock. Separately, analysts at Robert W. Baird raised their price target on shares of McKesson Corp. from $135.00 to $150.00 in a research note to investors on Tuesday, October 1st. They now have an “outperform” rating on the stock. Finally, analysts at UBS AG raised their price target on shares of McKesson Corp. from $127.00 to $143.00 in a research note to investors on Wednesday, September 25th. They now have a “buy” rating on the stock. Two investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. McKesson Corp. currently has a consensus rating of “Buy” and an average price target of $134.00.
McKesson Corporation delivers pharmaceuticals, medical supplies and healthcare information technologies.
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